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Residential Property Review Jan 2024

Falling Mortgage Rates Bolster Housing Market

Hope seems to be on the horizon for the housing market as the year gets off to a promising start.

The decision from many mortgage lenders to reduce rates seems to have had the desired effect, as buyer interest has noticeably increased. Lenders are competing to offer the best deals.

At the end of the first week of January, according to Zoopla, there were 10% more prospective buyers than in 2023. TwentyCI has reported that agreed property sales reached a nine-month-high in December, with many commentators now hopeful that this signifies a market that is slowly but surely getting back on track.

Oxford Economics expects the first cut to Bank Rate will come in May, thus relieving some of the pressure that many borrowers are under. This could further increase the demand for housing which, at the end of December, Zoopla has said was 19% higher than the previous year. Higher levels of demand are likely to have a knock-on effect on house prices, which could continue to stop falling if sellers no longer need to discount their property to make a sale.

Shutterstock/William Perugini

Most Sought After Areas

Prospective home buyers seem to be committed to returning to the capital, as London is the most searched-for location for the second year in a row, according to Rightmove.

During the pandemic in 2021, there were months where Cornwall overtook London as the most searched-for area. However, the southwestern county has been firmly in second REVIEW place for the last two years, indicating the mass exodus from cities has subsided. In fact, from 2022 to 2023, there was an 18% fall in the number of people looking to buy properties in Cornwall.

London is also the most popular location for renters according to Rightmove’s report, with Manchester and Bristol below it in the top three.

Tim Bannister, Rightmove’s Property Expert, observed that, “Many traditionally popular areas maintained their allure amongst buyers, whilst cheaper areas were also high on the list for buyers last year with affordability stretched.”

Shutterstock/Ground Picture

UK Landlords Owed Late Rent

The cost-of-living crisis is taking its toll on the private rented sector as tenants struggle to pay their rent on time.

According to research from mortgage lender Molo, landlords in the UK are owed an average of £725 in overdue rent. Those in Yorkshire and the North East are particularly affected, experiencing the highest number of late payments each year. Meanwhile, landlords in Greater London are owed the most amount of money.

VP of Strategy at Molo, Mark Michaelides, commented, “Our recent research found that over half (54%) of landlords have implemented payment plans for tenants facing late rent.” He added, “As a tenant, it’s important not to ignore the problem. I’d advise tenants to communicate promptly, explaining reasons for delays and requesting additional time. Open dialogue can lead to collaborative solutions.”

House Prices Headline Statistics









*(Jan 2015 = 100)

  • Average house prices in the UK decreased by 2.1% in the year to November 2023
  • On a non-seasonally adjusted basis, average UK house prices decreased by 0.8% between October 2023 and November 2023
  • The average price in London was £505,283


House Prices Price Change By Region

REGIONMonthly Change (%)Annual Change (%)Average Price (£)
NORTHERN IRELAND (QUARTER 3 – 2023)3.1%2.1%£179,530
EAST MIDLANDS-0.8%-3.0%£243,577
EAST OF ENGLAND-0.2%-3.3%£346,659
NORTH EAST-0.2%-0.4%£159,871
NORTH WEST-0.9%-2.0%£213,333
SOUTH EAST-0.4%-2.3%£385,844
SOUTH WEST-2.7%-4.1%£319,221
WEST MIDLANDS REGION-3.1%-3.4%£243,655

Average monthly price by property type – October 2023

Property TypeAnnual Increase
Detached £453,746-0.7%
semi-Detached £276,976-1.7%
Terraced £230,368-3.8%
Flat/Maisonette £227,718-1.8%

Source: The Land Registry Release date: 17/01/24

Housing market outlook

“As we move through 2024, the UK property market will continue toreflect the wider economic uncertainty and buyers and sellers arelikely to be naturally cautious when considering making a move.While wage growth is now above inflation, helping to easecost-of-living pressures for some and improving housing affordability,interest rates are likely to remain elevated for as long as inflationremains markedly above the Bank of England’s target. Our latestforecast suggests house prices could fall between -2% and -4% duringthe coming year, although, as with recent years, forecast uncertaintyremains high given the current economic climate.”

Kim Kinnaird, Director, Halifax Mortgages
Source: Halifax, December 2023

Contains HM Land Registry data © Crown copyright and database right 2023.
This data is licensed under the Open Government Licence v3.0.

All details are correct at the time of writing (17 January 2024)

All Images and content shown are reproduced with permission from Quilter Financial Planning.